TCNNF - Chicago Atlantic Real Estate Finance's Stock Valuation & Dividend Yield Are Leaving Competitors Behind | Benzinga
Chicago Atlantic Real Estate Finance (NASDAQ: REFI) stands out in the cannabis capital providers and mortgage REIT (mREIT) sectors due to its premium valuation, impressive dividend yield, and robust growth track record.
Pablo Zuanic, a senior equity analyst, noted in a recent report, "Of the six publicly listed cannabis capital providers, five are NASDAQ listed, being NLCP (OTC: NLCP) the exception. However, some may not currently provide the right comp due to poor liquidity, size, and relative newness."
Performance And Valuation Comparison
REFI trades at a 3% premium to its book value, reflecting strong investor confidence in its growth prospects.
This stands in contrast to other cannabis capital providers such as AFC Gamma, Inc. (NASDAQ: AFCG), which trades at a 20% discount to its book value, and Innovative Industrial Properties Inc. (NASDAQ: IIPR), which trades at a 57% premium. Its consistent performance and strategic management justify REFI’s premium.
Dividend Yield
One of REFI’s most attractive features is its 12.2% dividend yield. This is significantly higher than its peers, with AFCG offering a 15.8% yield and IIPR at 6.8%.
The high dividend yield, combined with a solid dividend coverage ratio of 117% over the last five quarters, underscores REFI’s ability to generate stable returns for investors.
Additionally, REFI’s yield is bolstered by special cash dividends paid in the past ...